In August 1998, Russia experienced a severe financial crisis that culminated in the devaluation of the ruble, a default on domestic debt, and a moratorium on foreign debt payments. The crisis was triggered by a collapse in oil revenues, a widening budget deficit, and the fallout from the Asian financial crisis. The default sent shockwaves through global markets, leading to the near-collapse of the U.S. hedge fund Long-Term Capital Management and prompting a reassessment of emerging market risk.

The Russian crisis was a defining moment for post-Soviet literature, inspiring works that explored the chaos and disillusionment of the Yeltsin era. Poets like Joseph Brodsky and others wrote about the economic collapse as a metaphor for the failure of the post-communist transition, themes that resonated in the poetry of the 1990s.